The government is pushing in two directions as it seeks to slow price growth while avoiding a collapse. Itís lowering borrowing costs for first-time homebuyers to encourage purchases while Premier Wen Jiabao keeps curbs in place to stem the speculators who have helped drive home prices up by as much as 140 percent since 1998.
Chinaís 18 percent first-quarter drop in home sales contributed to the slowest economic growth in almost three years...............................................Full Article: Source